The compiled information relating to the passive investments held by Charly plc Ltd is shown below:

	Investment in Big Cherry ordinary shares	Investment in Orange Peel Ltd ordinary shares	Investment in Monsoon Ltd Bonds offshore investment
	Held-for- trading	Available for sale	Held-for-maturity
Cost (*)	R500 000	R1 000 000	$80 000
Market value 31.12.15	R550 000	R1 100 000	$81 000
Market value 31.12.16	R575 000	R1 150 000	$79 000
Exchange rate 31.12.16			1$=R15
Average exchange rate for 2016			1$=R13
Coupon rate (equal to market interest rate)			2.5% payable annually on 31.12
Redemption value			$80 000, at the end of 2018 (refer to amortisation table)

(*) all securities were acquired at market value on date of acquisition

NB : 'R' IS A SOUTH AFRICAN CURRECNY

Amortisation table
	Coupon: 2.5%	Interest: 2.5%
$	Cashflows	Interest	Amortised cost
1.1.2016	80 000		80 000
31.12.2016	2 000	2 000	80 000
31.12.2017	2 000	2 000	80 000
31.12.2018	2 000	2 000	80 000

Show all steps and calculations.

Required:

1. 1.1 At what value will the Big Cherry and Orange Peel Investments be recorded in the financial statements at 31 December 2016? (2)
2. 1.2 Explain, in each of these two cases, how the movement in value from 31 December 2015 to 31 December 2016 would have been recorded. You are required to calculate the movement. (4)
3. 1.3 If Big Cherry is sold in the 2017 year, describe what impact this would have on the financial statements. (1)
4. 1.4 With regard to the foreign investment in Monsoon Ltd, at what value would it be recorded in the Balance Sheet at 31 December 2016 (state the dollar and rand amounts) and what would the interest income (state the dollar and rand amounts) in the Income Statement be for the 2016 year? What would the forex amount be in the Income Statement for the 2016 year? (3)